QUESTION $3$

$[42$ Marks$]$

a$)$ Explore the advantages and disadvantages of credit by discussing five merits and five demerits. Provide a comprehensive analysis of the positive aspects and drawbacks associated with the utilization of credit $(10$ marks$)$

b$)$ Provide an elaborate discussion on the three sound principles of lending. Offer detailed insights into these fundamental principles that guide lending practices $(12$ marks$)$

c$)$ Examine the rationale behind banks requiring customers to contribute a portion of the capital needed for a project. Explain the importance of customer investment in projects and how it aligns with banking practices $(10$ marks$)$

$7$

d$)$ Propose five reasons highlighting the importance of selecting the optimal structure in legal forms of ownership. Discuss the considerations and implications involved in choosing the best structure for ownership $(10$ marks$)$